NextSource Materials Inc. announced the signature of a binding Offtake Agreement for the supply of NextSource’s SuperFlake® graphite concentrate with a prominent Japanese Trading Company that is a primary supplier of flake graphite to a major Japanese electric vehicle anode producer. To protect certain confidential aspects of the Offtake Agreement, the Japanese Trading Company and the Japanese electric vehicle anode producer have requested not to be identified at this time. The Offtake Agreement is for a period of ten years and activates on the commencement of commercial production at the Molo project, with an automatic renewal for an additional five years. The Japanese Partner will have the exclusive right to import and sell SuperFlake® graphite concentrate in Japan. Provided that commercial production commences within 3 years, following the ramp up period, the Japanese Partner will purchase 20,000 tonnes of SuperFlake® graphite per annum. Product prices will be negotiated on a per order basis between the parties and will be based on the floating market prices (FOB basis) prevailing in the region. The Company has been advised that the primary customer of the Japanese Partner is a major global battery anode material manufacturer in Japan who has qualified Molo SuperFlake® graphite for battery requirements with its automotive customers. Additionally, the company has been advised that product testing by this battery anode material producer has verified that NextSource’s SuperFlake® graphite concentrate achieved superior test results compared to the current graphite anode material it sources for use in LiB for EV applications. The Japanese partner has indicated that all 20,000 tonnes per annum of NextSource’s SuperFlake® graphite concentrate will be used specifically for use in EV applications, and that the Japanese partner’s intention is to purchase additional tonnage in various size fractions for specific high-end application markets, such as expanded graphite (graphite foils) for the consumer electronics and fire retardant industries. Separate from the Offtake Agreement, the company and the Japanese Partner have agreed to immediately commence discussions regarding additional supply chain cooperation. Specifically, the parties have initiated discussions regarding a potential partnership for the production of value-add, downstream products using SuperFlake® graphite concentrate. This would include, but not be limited to, the processing of NextSource’s SuperFlake® graphite concentrate into spherical and purified graphite (SPG), both uncoated and coated, and expanded graphite for use in graphite foils in a separate and dedicated facility in a location that would best optimize the Japanese Partner’s customer base. The company and the Japanese Partner have begun organizing logistics towards meetings this November in Asia.